``We're very pleased with our progress,'' said Cannondale Founder and President Joe Montgomery. ``We've got an exciting product, and we're looking forward to getting it back into the marketplace.''

Montgomery also stated that development of the Company's FX400 ATV was progressing well. ``We're pleased with how the FX400 is coming along,'' said Montgomery. ``We're testing multiple prototypes every day in all kinds of weather, and we expect to begin shipping our first production units in the first quarter of calendar 2001.'' The FX400 uses the same basic engine platform developed for the MX400.

Cannondale Corporation is the world's leading manufacturer of high-performance bicycles. The Company's bicycles and bicycle accessories, which include clothing, packs and bags, HeadShok suspension forks and CODA components, are marketed under the Cannondale brand name and ``Handmade in USA'' logo, and are sold in the U.S. and in more than 60 foreign countries.

The Company entered the motorsports industry with the MX400 motocross motorcycle. Besides the FX400 ATV, the Company has also announced plans to develop two additional motorcycle models.

This press release contains forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties, including risks and uncertainties described in this press release, as well as those detailed from time to time in the Company's periodic reports on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.